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PSI Services LLC

3210 E Tropicana Las Vegas, NV 89121

https://test-takers.psiexams.com/pnap

COMMONWEALTH OF PENNSYLVANIA

CERTIFIED EVALUATOR AND APPRAISER EXAMINATION

CANDIDATE INFORMATION BULLETIN

CONTENT OUTLINE Examinations by PSI ............................................... 2 Guidelines for License Application/Qualification ............ 2 Examination Scheduling Procedures ........................... 2

Scheduling an Appointment to take the Examination .. 2 Canceling an Examination Appointment .................. 2 Internet Scheduling ........................................ 3 Missed Appointment or Late Cancellation ................ 5 Exam Accommodations .......................... 5 Examination Site Closing for an Emergency ............. 5 Social Security Number Confidentiality ................... 5

Examination Site Locations ...................................... 5 Reporting to the Examination Site ............................. 6

Required Identification at the Examination Site ........ 6 Security Procedures ........................................ 6

Taking the Examination by Computer ......................... 7 Tutorial ........................................................ 7

Test Question Screen ........................................ 7 Description of Certified Evaluator Examination .............. 7

Examination Summary Table ................................ 7 Non-Scored Questions ........................................ 7 Content Outline ................................................ 7 Score Reporting ............................................ 10

Exam Review ................................................. 10 Description of Appraiser Examinations ....................... 10

Examination Summary Table .............................. 10 Non-Scored Questions ...................................... 10 Content Outlines ............................................ 10 Score Reporting .............................................. 10 Exam Review ................................................. 11

Sample Questions ............................................ 11

Copyright © 2022 by PSI Services 5/25/2022

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EXAMINATIONS BY PSI This Candidate Information Bulletin provides you with information about the examination and application process for a certified evaluator or appraiser license in the Commonwealth of Pennsylvania.

Pennsylvania laws stipulate that a person may not act as an appraiser without first obtaining a certification issued by the Pennsylvania State Board of Certified Real Estate Appraisers. To be certified, you must pass an examination to confirm that you have attained at least a minimum level of knowledge regarding the principles, practices, statutes, and regulations relating to real estate appraisal. The Pennsylvania State Board of Certified Real Estate Appraisers has contracted with PSI Services LLC (PSI) to conduct the examination program. PSI provides examinations through a network of computer examination centers in Pennsylvania. PSI works closely with the State to be certain that examinations meet local as well as national requirements in basic principles and examination development standards. Following is the Pennsylvania licensing examination offered by PSI:

• Certified Evaluator Following are the National Uniform Licensing and Certification Examinations, developed by the Appraiser Qualifications Board (AQB), as the Licensing Examinations for Appraisers in Pennsylvania offered by PSI: ▪ Certified Residential Appraiser ▪ Certified General Appraiser

GUIDELINES FOR CERTIFICATION

APPLICATION/QUALIFICATION The State Board of Certified Real Estate Appraisers regulates the certification of real estate evaluators in the Commonwealth of Pennsylvania. Upon application, the Board examines for, denies, approves, issues, revokes, suspends and renews certificates of appraisers and assessors. In addition to passing upon the qualifications and fitness of applicants for certification, the Board’s functions include establishing standards of professional appraisal practice and conducting hearings upon complaint.

Pennsylvania State Board of Certified Real Estate Appraisers

P.O. Box 2649 Harrisburg, PA 17105-2649

(717) 783-4866 * Fax (717) 705-5540 http://www.dos.pa.gov/ProfessionalLicensing/BoardsCommissions/Pages/default.aspx#.VL5hKlYo6Uk Upon approval by the Board, you will be sent an Approval Form, including instructions for contacting PSI about scheduling/paying for the examination.

EXAMINATION SCHEDULING PROCEDURES All questions and requests for information pertaining to the examination should be directed to PSI.

PSI

3210 E Tropicana Las Vegas, NV 89121

(800) 746-8173 https://test-takers.psiexams.com/pnap

Once you have received your Approval Form, you are responsible for contacting PSI to schedule an appointment to take the examination. You must pay the examination fee at the time you schedule. Examination fees can be found on the registration form at the end of this bulletin.

Be prepared to provide the issuance date on your approval form when you contact PSI to schedule your exam.

You must bring your Approval Form to the test center the first time you test.

All eligibilities are valid for 1 year from the date that the application is approved by the board. If you do not pass the examination within the 1 year period, you must reapply with the board.

You may take the examination on an unlimited basis during this 1 year period.

If you fail and are re-taking the examination, you must bring your failing score report or Approval Form to the test center on the day of your test.

The examination fee is valid for one year from date of eligibility.

SCHEDULING AN APPOINTMENT TO TAKE THE EXAMINATION Once you have received your eligibility notice, you are responsible for contacting PSI to schedule an appointment to take the examination. PSI will make every effort to schedule the examination site and time that is most convenient for you. For first time test takers, you must contact PSI by phone at (800) 746-8173. PSI registrars are available Monday through Friday between 7:30 am and 10:00 pm and Saturday-Sunday, between 9:00 am and 5:30 pm, Eastern Time. If space is available in the examination site of your choice, you may schedule an examination 1 day prior to the examination date of your choice, up to 7:00pm Eastern Time. Please be prepared to offer alternate examination appointment choices. Note: only the candidate may schedule an appointment through a Customer Service Representative (CSR), not a friend or relative.

CANCELING AN EXAMINATION APPOINTMENT You may cancel and reschedule an examination appointment without forfeiting your fee if your cancellation notice is received 2 days prior to the scheduled examination date. For example, for a Monday appointment, the cancellation notice would need to be received on the previous Saturday. You may call PSI at (800) 746-8173. Note: A voice mail message is not an acceptable form of cancellation. Please use the PSI website or call PSI and speak directly to a Customer Service Representative.

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ONLINE (https://test-takers.psiexams.com/pnap) For the fastest and most convenient examination scheduling process, register for your examinations online by accessing PSI’s registration Website: Click Here or on the email confirmation you received from PSI.

1. Select TESTS to create an account.

2. Select the examination and you are ready to create an account. Select LOGIN/REGISTER.

3. You will be prompted to CREATE AN ACCOUNT with PSI.

The first and last name must match exactly with your current, valid, government-issued ID.

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4. Enter the “City or Postal Code” and select FIND.

5. Select a date and time to book an appointment.

6. You are now ready to pay.

7. Once payment has been made you will receive a message confirming the test center, booked date, and booked time.

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MISSED APPOINTMENT OR LATE CANCELLATION If you miss your appointment, you will not be able to take the examination as scheduled, further you will forfeit your examination fee, if you: ▪ Do not cancel your appointment 2 days before the scheduled

examination date; ▪ Do not appear for your examination appointment; ▪ Arrive after examination start time; ▪ Do not present proper identification when you arrive for the

examination.

EXAM ACCOMMODATIONS All PSI examination centers are equipped to provide access in accordance with the Americans with Disabilities Act (ADA) of 1990, and exam accommodations will be made in meeting a candidate's needs. A candidate with a disability or a candidate who would otherwise have difficulty taking the examination should request for alternative arrangements by Clicking Here.

Candidates granted accommodation in accordance with the ADA, MUST schedule their examination by telephone and speak directly with a PSI registrar. You will need to fill this out if requesting to test out of state.

EXAMINATION SITE CLOSING FOR AN EMERGENCY In the event that severe weather or another emergency forces the closure of an examination site on a scheduled examination date, your examination will be rescheduled. PSI personnel will attempt to contact you in this situation. However, you may check the status of your examination schedule by calling (800) 746-8173. Every effort will be made to reschedule your examination at a convenient time as soon as possible. You will not be penalized. You will be rescheduled at no additional charge. You may also check our website at https://test-takers.psiexams.com/pnap.

SOCIAL SECURITY NUMBER CONFIDENTIALITY

PSI will use your social security number only as an identification number in maintaining your records and reporting your examination scores to the state. A Federal law requires state agencies to collect and record the social security numbers of all licensees of the professions licensed by the state.

EXAMINATION SITE LOCATIONS

The examinations are administered at the examination centers listed below. The following directions are generated from the most current mapping services available. However, new road construction and highway modifications may result in some discrepancies. If you are not familiar with the specific area of the testing site, please consult a reliable map prior to your test date.

Allentown BCY Testing Solution

961 Macron Blvd, Suite 101 Allentown, PA 18109

From the West-Take Rte 78 E to Rte 22 E to Route 987 N -Airport Rd. From the E/NJ areas -Take Rte 78 W to Rte 33 N to Route 22 West to Rte 987 N-Airport Rd. From Scranton/Wilkes-Barre/Poconos Areas-Take PA Turnpike South-Rte 476 to Lehigh Valley exit to Rte 22 E to Route 987 N -Airport Rd. From Philadelphia and Southern NJ Areas -Take Northeast Extension -Rte 476 of the Pennsylvania Turnpike N to Rte 22 E to Rte 987 N-Airport Rd. From New Hope/Lambertville Area -Take Rte 32 N to Rte 611 N to Rte 22 West to Rte 987 N-Airport Rd. 961 is a large tan and brown brick building. Parking all around the building is free. If you enter through the front of the building BCY is located on the first floor, down the left hallway and on the left -Suite 101. All candidates are required to bring and wear a facemask/face cover for their appt. Candidates without masks will be turned away.

Bristol

1200 Veterans Highway, Suite B4 Bristol, PA 19007

On I-95 toward Bristol Township, exit Bristol then turn right at the stoplight. Office is the second building on the left. There are many entrances, but use the entrance under the clock tower.

Erie 2700 W. 21st Street, Suite 21 & 22

Erie, PA 16506 From Interstate 79 North, take the West 26th St., exit 182, or Rt. 20 West. Just after the 2nd light you'll see Bonnel Auto Sales on your right. Lowell Ave runs along the side of the Bonnel Auto Sales, make a right onto Lowell. Stay on Lowell until it intersects with West 21st St. Make the left onto 21st and our building sits on that corner. The 2700 is written across the front of the building. From I 79 South coming from Erie proper same directions 26th St., exit 182 or Rt. 20 West right at Bonnel Auto Sales on Lowell. Stay on Lowell until West 21st St intersects. The office at 2700 West 21st St. sits on the left corner across the street from where you are now at the yield sign.

Greensburg DiCesare Building

116 E. Pittsburgh St., Suite 101 Greensburg, PA 15601

From Route 30 East or West, exit Business 66 North (NB. NOT Turnpike 66.) Go about 1.5 miles into downtown Greensburg. Turn right in the direction of Route 30 East at the lights between First Commonwealth Bank and Citizen's Bank. Building will be about 500 feet on right, past the YMCA but before Co Go's garage.

Harrisburg

4309 Linglestown Rd, Suite 114 Harrisburg, PA 17112

From I-81S – Take exit 72 towards Linglestown. Merge onto N Mountain Road. Go 1.1 miles and take the traffic circle. Take the third exit onto Linglestown Rd. At the next traffic circle, take the second exit to remain on Linglestown Rd. Go 1.5 miles and the office building will be on your left.

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From I-81N – Take exit 72B towards Linglestown. Merge onto N Mountain Road. Go 1.1 miles and take the traffic circle. Take the third exit onto Linglestown Rd. At the next traffic circle, take the second exit to remain on Linglestown Rd. Go 1.5 miles and the office building will be on your left.

Philadelphia (Bala Cynwyd) One Bala Avenue, Suite 310

Bala Cynwyd, PA 19004 From I-76, exit City Line Avenue. Follow City Line Avenue South. The building is on Bala and City Line (next to the Bala Cynwyd railroad station). Note: This is NOT Bala Plaza.

Pittsburgh

Towne Center 1789 South Braddock Avenue, Suite 296

Pittsburgh, PA 15218 From I-376 East, go through Squirrel Hill tunnels. Exit #77 toward Swissville. Turn slight left onto Monongahela Avenue. Turn right on South Braddock Avenue (IN THE EDGEWOOD TOWNE CENTER OFFICE BUILDING).

All candidates should report to the PSI office 30 minutes prior to the published session time, and no earlier. If candidates wish to arrive earlier, they must wait in the Security Office's designated areas on the first floor, or outside of the building. The building management does not allow candidates to wait in the hallways, and/or common areas of other floors, including our own floor. Thank you for your cooperation.

Scranton

1125 Lackawanna Trail Rts 6&11 Clarks Summit, PA 18411

From I-81N take Exit 194 (Clarks Summit) and merge onto US6W/US/llN. Continue on Routes 6 & 11 for approximately 3 miles until you see the Agway building on the left side of the road. Just before the Agway building, make a U-turn. After making the U turn you will see 2 houses before you see the PSI parking lot. PSI is located in a long brown brick building which is set back from the highway. There is a small red and white sign located at the entrance to the parking lot. (If approaching from the opposite direction (US6S/US11E) PSI is located on the right, approximately 100 feet after the Agway building).

Examinations are also available to Pennsylvania candidates in other PSI testing centers located across the U.S. Regionally located sites are found in:

• West Hartford, CT

• Milford, CT

REPORTING TO THE EXAMINATION SITE On the day of the examination, you should arrive 30 minutes before your appointment. This extra time is for sign-in, identification, and familiarizing you with the examination process. If you arrive late, you may not be admitted to the examination site and you will forfeit your examination registration fee.

REQUIRED IDENTIFICATION AT EXAMINATION SITE

You must provide 1 form of identification. The identification must match the name you scheduled with. NOTE: ID must contain candidate’s signature, photo, be valid and unexpired.

▪ State issued driver’s license ▪ State issued identification card ▪ US Government Issued Passport ▪ US Government Issued Military Identification Card (not

allowed for remote testing) ▪ US Government Issued Alien Registration Card ▪ Canadian Government Issued ID

If you fail and are re-taking the examination, you must bring your failing score report or Approval Form from the State Board to the test center. Failure to provide all of the required identification at the time of the examination without notifying PSI is considered a missed appointment, and you will not be able to take the examination.

SECURITY PROCEDURES The following security procedures will apply during the examination: ▪ Candidates will not be permitted to use any calculator that

is alpha programmable. In addition, as stipulated by the AQB, each candidate is required to bring the written instructional manual that was provided with the programmable calculator when purchased by the candidate or instructions downloaded from the manufacturer’s website so that the test center proctor can ensure that all numeric programs previously stored in the calculator are cleared before the candidate is permitted to use the calculator during the examination. If you do NOT bring these instructions, you will not be permitted to use the calculator. Moreover, all programmable calculators must be cleared upon conclusion of the examination by the test center proctor to prohibit potential security breaches. Note: Candidates need to bring their own financial calculator. One is not available at the test center. Candidates may not share a calculator during the exam.

▪ Candidates may take only approved items into the examination room.

▪ All personal belongings of candidates should be placed in the secure storage provided at each site prior to entering the examination room. Personal belongings include, but are not limited to, the following items: - Electronic devices of any type, including cellular /

mobile phones, recording devices, electronic watches, cameras, pagers, laptop computers, tablet computers (e.g., iPads), music players (e.g., iPods), smart watches, radios, or electronic games.

- Bulky or loose clothing or coats that could be used to conceal recording devices or notes. For security purposes outerwear such as, but not limited to: open sweaters, cardigans, shawls, scarves, vests, jackets and coats are not permitted in the testing room. In the event you are asked to remove the outerwear,

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appropriate attire, such as a shirt or blouse should be worn underneath.

- Hats or headgear not worn for religious reasons or as religious apparel, including hats, baseball caps, or visors.

- Other personal items, including purses, notebooks, reference or reading material, briefcases, backpacks, wallets, pens, pencils, other writing devices, food, drinks, and good luck items.

▪ Although secure storage for personal items is provided at the examination site for your convenience, PSI is not responsible for any damage, loss, or theft of any personal belongings or prohibited items brought to, stored at, or left behind at the examination site. PSI assumes no duty of care with respect to such items and makes no representation that the secure storage provided will be effective in protecting such items. If you leave any items at the examination site after your examination and do not claim them within 30 days, they will be disposed of or donated, at PSI’s sole discretion.

▪ Person(s) accompanying an examination candidate may not wait in the examination center, inside the building or on the building's property. This applies to guests of any nature, including drivers, children, friends, family, colleagues or instructors.

▪ No smoking, eating, or drinking is allowed in the examination center.

▪ During the check in process, all candidates will be asked if they possess any prohibited items. Candidates may also be asked to empty their pockets and turn them out for the proctor to ensure they are empty. The proctor may also ask candidates to lift up the ends of their sleeves and the bottoms of their pant legs to ensure that notes or recording devices are not being hidden there.

▪ Proctors will also carefully inspect eyeglass frames, tie tacks, or any other apparel that could be used to harbor a recording device. Proctors will ask to inspect any such items in candidates’ pockets.

▪ If prohibited items are found during check-in, candidates shall put them in the provided secure storage or return these items to their vehicle. PSI will not be responsible for the security of any personal belongings or prohibited items.

▪ Any candidate possessing prohibited items in the examination room shall immediately have his or her test results invalidated, and PSI shall notify the examination sponsor of the occurrence.

▪ Any candidate seen giving or receiving assistance on an examination, found with unauthorized materials, or who violates any security regulations will be asked to surrender all examination materials and to leave the examination center. All such instances will be reported to the examination sponsor.

▪ Copying or communicating examination content is violation of a candidate’s contract with PSI, and federal and state law. Either may result in the disqualification of examination results and may lead to legal action.

▪ Once candidates have been seated and the examination begins, they may leave the examination room only to use the restroom, and only after obtaining permission from the proctor. Candidate will not receive extra time to complete the examination.

TAKING THE EXAMINATION BY COMPUTER

The examination will be administered via computer. You will be using a mouse and computer keyboard.

TUTORIAL

Before you start your examination, an introductory tutorial is provided on the computer screen. The time you spend on this tutorial, up to 15 minutes, DOES NOT count as part of your examination time. Sample questions are included following the tutorial so that you may practice answering questions, and reviewing your answers.

TEST QUESTION SCREEN

One question appears on the screen at a time. During the examination, minutes remaining will be displayed at the top of the screen and updated as you record your answers. IMPORTANT: After you have entered your responses, you will later be able to return to any question(s) and change your response, provided the examination time has not run out.

DESCRIPTION OF CERTIFIED EVALUATOR EXAMINATION

EXAMINATION SUMMARY TABLE

Examination # of Items

Time Allowed

Certified Pennsylvania Evaluator 100 180 minutes

NON-SCORED QUESTIONS In addition to the number of examination items specified, a small number of five to ten “experimental” questions may be administered to candidates during the examinations. These questions will not be scored and the time taken to answer them will not count against examination time. The administration of such non-scored experimental questions is an essential step in developing future certifying examinations.

CONTENT OUTLINES

The examination content outlines have been prepared and are periodically updated by committees of professionals who are subject matter experts in real estate appraisal and regulatory issues. The examination content outlines these professionals have prepared identify areas of importance to licensees in order for them to perform their duties to the public in a competent and legally responsible manner.

CERTIFIED EVALUATOR EXAMINATION CONTENT OUTLINE Use the outline as a guide for pre-examination review course material. The outline lists the topics that are on the examination and the number of questions for each topic. Do not schedule your examination until you are familiar with the topics in the outline.

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I. Influences on Real Estate Value (5 items) A. Physical and environmental B. Economic

C. Governmental D. Social

II. Legal Considerations in Appraisal (5 items) A. Real estate vs. real property B. Real property vs. personal property C. Limitations on real estate ownership 1. Private a. Deed restrictions b. Leases c. Mortgages d. Easements e. Liens f. Encroachments 2. Public a. Police Power (1) Zoning (2) Building and fire codes (3) Environmental regulations b. Taxation (1) Property tax (2) Special assessments c. Eminent domain d. Escheat D. Legal rights and interests 1. Fee simple estate 2. Life estate 3. Leasehold interest 4. Leased fee interest 5. Other legal interests a. Easement b. Encroachment E. Forms of property ownership 1. Individual 2. Tenancies and undivided interests 3. Special ownership forms a. Condominiums b. Cooperative F. Legal descriptions 1. Metes and bounds 2. Government survey 3. Lot and block G. Transfer of title 1. Basic types of deeds 2. Recordation III. Types of Value (3 items)

A. Market value or value in exchange B. Price C. Cost E. Value in use F. Assessed value IV. Economic Principles (5 items) A. Anticipation B. Balance C. Change D. Competition E. Conformity F. Contribution G. Increasing and decreasing returns H. Substitution

I. Supply and demand J. Surplus productivity V. Real Estate Markets and Analysis (6 items) A. Characteristics of real estate markets 1. Availability of information 2. Changes in supply vs. demand 3. Immobility of real estate 4. Segmented markets 5. Regulations B. Role of money and capital markets 1. Competing investments 2. Sources of capital C. Real estate financing 1. Mortgage terms and concepts a. Mortgagor b. Mortgagee c. Principal and interest 2. Mortgage payment plans a. Fixed rate, level payment b. Adjustable rate c. Buydown d. Other 3. Types of mortgages a. Conventional

b. Insured

VI. Valuation Process (5 items) A. Definition of the problem 1. Purpose and use of appraisal 2. Interests to be appraised 3. Type of value to be estimated 4. Date of the value estimate 5. Limiting conditions B. Collection and analysis of data 1. Economic base 2. Local area and neighborhood a. Employment b. Income c. Trends d. Access e. Locational convenience 3. Site and improvements C. Analysis and limitations of each approach to value 1. Sales comparison 2. Cost 3. Income capitalization D. Reconciliation and final value estimate

VII. Property Description (10 items) A. Site description 1. Utilities 2. Access 3. Topography 4. Size B. Improvement description 1. Size 2. Condition 3. Utility C. Basic construction and design 1. Techniques and materials a. Foundations b. Framing c. Finish (exterior and interior)

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2. Functional utility

VIII. Highest and Best Use Analysis (5 items) A. Four tests 1. Legally permitted 2. Physically possible 3. Financially feasible 4. Maximally productive B. Vacant site or as if vacant C. As improved

IX. Appraisal Statistical Concepts (5 items) A. Mean B. Median C. Mode D. Range

E. Array

X. Sales Comparison Approach (9 items) A. Research and selection of comparables 1. Data sources

2. Verification 3. Units of comparison a. Data sources b. Size (1) Square feet (2) Acres (3) Other c. Utility (examples only) (1) Rooms (2) Beds (3) Other B. Elements of comparison 1. Property rights conveyed a. Leased fee/leasehold b. Easements c. Others 2. Conditions of sale a. Arms-length sale b. Personalty 3. Location 4. Physical characteristics C. Adjustment process 1. Sequence of adjustments 2. Dollar adjustments 3. Percentage adjustments 4. Paired sales analysis D. Application of sales comparison approach

XI. Site Value (5 items) A. Sales comparison B. Land residual C. Allocation D. Extraction E. Plottage and assemblage F. Ground rent capitalization G. Subdivision analysis 1. Development cost: direct and indirect 2. Contractor's overhead and profit 3. Entrepreneurial profit

XII. Cost Approach (8 items) A. Steps in cost approach 1. Reproduction vs. replacement cost a. Comparative unit method b. Unit-in-place method

c. Quantity survey method

d. Cost service index 2. Accrued depreciation a. Types of depreciation (1) Physical deterioration (a) Curable (b) Incurable (c) Short-lived (d) Long-lived (2) Functional obsolescence (a) Curable (b) Incurable (3) External obsolescence (a) Locational (b) Economic

b. Methods of estimating depreciation (1) Age-life method (2) Breakdown method and sequence of deductions (3)Market extraction of depreciation c. Accrual depreciation (estimating depreciation into

future) B. Application of the cost approach XIII. Income Approach (6 items) A. Estimation of income and expenses 1. Gross market income 2. Effective gross income a. Vacancy b. Collection loss 3. Operating expenses a. Fixed expenses b. Variable expenses c. Reserve for replacements 4. Net operating income B. Gross rent multiplier analysis C. Direct capitalization 1. Overall capitalization rate 2. Gross income multiplier and net income ratio 3. Band of investment (mortgage equity) techniques D. Cash flow estimates (before tax only) 1. Operating years a. Estimating NOI with a change in NOI E. Discounted cash flow analysis (DCF) 1. Potential gross income and expense estimate a. Market vs. contract rents XIV. Valuation of Partial Interests (1 item) A. Partial interests 1. Life estates 2. Undivided interest in commonly held property 3. Easements 4. Timeshares 5. Cooperatives B. Interests created by a lease 1. Leased fee estate 2. Leasehold estate C. Separate valuation of surface and subsurface rights XV. Appraisal Standards and Ethics (4 items)

XVI.Mass Appraisals and Mass Appraisal Models (3 items)

XV. Pennsylvania Law and Regulation (15 items)

A. Tax Assessment Rates and Calculations B. Tax Assessment Laws and Rules

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C. Assessment Appeals D. Assessors Certification Act E. PA Code 36.201 through 281 F. Standards of Conduct G. Powers and Duties of State and County Boards

EXAMINATION REVIEW

PSI, in cooperation with the Pennsylvania State Board of Certified Real Estate Appraisers, will be consistently evaluating the examinations being administered to ensure that the examinations accurately measure competency in the required knowledge areas. While taking the examination, examinees will have the opportunity to provide comments on any questions. Comments may be entered by clicking the Comments link on the function bar of the test question screen. These comments will be analyzed by PSI examination development staff. PSI does not respond to individuals regarding these comments, all substantive comments are reviewed. This is the only review of examination materials available to candidates.

DESCRIPTION OF APPRAISER EXAMINATIONS

NATIONAL UNIFORM LICENSING AND CERTIFICATION

EXAMINATIONS, DEVELOPED BY THE APPRAISER

QUALIFICATIONS BOARD (AQB) Pennsylvania utilizes the National Uniform Licensing and Certification Examinations which are developed by the Appraiser Qualifications Board (AQB). For further information or to express concerns about the examination content, please contact:

The Appraiser Qualifications Board c/o The Appraisal Foundation

1155 15th Street, NW, Suite 1111 Washington, DC 20005

www.appraisalfoundation.org Telephone: 202-347-7722

Fax: 202-347-7727

EXAMINATION SUMMARY TABLE

Examination Number

of Scored Questions

Number of Non-Scored

Questions

Passing Scaled Score

Time Allowed

Certified Residential Appraiser

(CR)

110 15 75 4 hours

Certified General

Appraiser (CG)

110 15 75 6 hours

NON-SCORED QUESTIONS

In addition to the number of scored examination items specified, fifteen non-scored questions will be administered to

candidates during the examinations. The administration of such non-scored questions is essential in developing future licensing examinations.

NATIONAL UNIFORM AND CERTIFICATION EXAMINATION

CONTENT OUTLINES

The examination content outlines have been prepared by the AQB. Use the outline as a guide for pre-examination review course material. The outlines list the content domains and sub-domains that are on the examination and the percentage of questions for each domain. Do not schedule your examination until you are familiar with the topics in the outline.

SCORE REPORTING

In order to pass the examination, you must achieve a minimum scaled score of 75. You will receive your score report immediately following the completion of the examination.

Candidates passing the examination will receive ONLY a score indication of PASS. Passing numeric scores are not available. Candidates who do not pass will receive an individual score for each of the major sections in the examination outline. Candidates should use this information to assist them in studying for the re-examination.

Scaled scores can range from 0 to 110, with 75 and above representing passing. Scores are reported to candidates as scaled scores. The scaled scores are computed from raw scores. Raw scores, or percentage scores, are the actual number of questions answered correctly. Raw scores are mathematically converted to scaled scores to maintain a consistency in the meaning of scores, regardless of when the examination was taken.

Examinations change over time. Each examination may vary in difficulty with one examination easier or more difficult than other examinations. However, when converting raw scores to scaled scores, it should not make a difference whether candidates take an easier or more difficult examination. With the mathematical adjustment, the scaled score accounts for differences by adjusting the scores up or down depending on the difficulty of examinations. When these adjustments are made, the effect is to produce an unbiased and constant passing standard that does not change from one examination to another. A scaled score is not a percentage score, but simply a transformation of a raw score to report comparable results when examinations vary in difficulty.

You may request a duplicate score report after your examination by emailing scorereport@psionline.com.

EXAMINATION REVIEW

AQB will be consistently evaluating the examinations being administered to ensure that the examinations accurately measure competency in the required knowledge areas. While taking the examination, examinees will have the opportunity to provide comments on any questions. Comments may be entered by clicking the Comments link on the function bar of the test question screen.

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Comments will be analyzed by AQB examination development staff. AQB does not respond to individuals regarding these comments. All substantive comments are reviewed. This is the only review of examination materials available to candidates.

Appraiser Qualifications Board National Uniform Licensing and Certification Examinations Content Outline

% of items

Content Area Description CR CG

1 Real Estate Market 18% 18%

1.a Types of Influences on Real Estate Value

1.b Types of Government Power

1.c Types of Real Estate Value

1.d Date of Value Premise

1.e Market Analysis

1.f Investment Analysis

1.g Tests of Highest and Best Use

1.h Analysis of Highest and Best Use

2 Property Description 12% 11%

2.a Description of Land or Site

2.b Description of Improvements and Building Components

2.c Legal Interest

2.d Rights to Use

2.e Property Taxation

3 Land or Site Valuation 3% 4%

3.a Land or Site Valuation Methods

4 Sales Comparison Approach 18% 13%

4.a Identification of Comparable Sales

4.b Units of Comparison

4.c Elements of Comparison

4.d Quantitative Adjustments

4.e Qualitative Adjustments

4.f Reconciliation to Indicated Value by the Sales Comparison Approach

5 Cost Approach 14% 11%

5.a Sources of Cost Information

5.b Cost Components

5.c Depreciation

5.d Methods of Estimating Depreciation

5.e Reconciliation to Indicated Value by the Cost Approach

6 Income Approach 8% 18%

6.a Sources of Income Generation

6.b Occupancy / Vacancy Analysis

6.c Expenses

6.d Capitalization

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6.e Estimation of Value Using Income Approach

6.f Reconciliation to Indicated Value by the Income Approach

7 Reconciliation of Value Indications 2% 2%

7.a Reconciliation of Approaches to Value

8 Uniform Standards of Professional Appraisal Practice 18% 17%

8.a Definitions and Preamble

8.b Ethics Rule

8.c Record Keeping Rule

8.d Competency Rule

8.e Scope of Work Rule

8.f Jurisdictional Exception Rule

8.g Standard 1

8.h Standard 2

8.i Standard 3

8.j Standard 4

8.k USPAP Advisory Opinions and FAQs

8.l Extraordinary Assumption

8.m Hypothetical Condition

9 Emerging Appraisal Methods 4% 3%

9.a Application of Online Property Information Database and Technological Tools

9.b Appropriate Use and Limitations of the Hybrid/Bifurcated Appraisal Method

9.c Use and Limitations of Automated Valuation Models

10 Appraisal Statistical Methods 3% 3%

10.a Statistical Measures of Central Tendency

10.b Statistical Measures of Variation

10.c Inferential Statistical Techniques Used in Appraising

SAMPLE QUESTIONS The following questions are offered as examples of the types of questions you will be asked during the course of the examination. The examples do not represent the full range of content or difficulty levels found in the actual examinations. They are intended to familiarize you with the types of questions you can expect to find in the examinations. The answer key is found at the end of the sample questions.

1. The subject property is a 10,000-sf office building encumbered by a full-service lease with a contract base rent of $1.25 per square foot monthly. Stabilized vacancy/credit loss allowance for similar properties within the market area is 7% of PGI. The operating expense ratio for similar properties is 30% of EGI, plus reserves for replacement of $0.15 per square foot. What is the projected net operating income?

A. $93,000 B. $94,500 C. $96,150 D. $97,650

2.

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The subject assignment is to appraise a vintage house built in 1880 using the cost approach. The house has metal stamped ceilings, lath, and plaster walls, which are items not easily available in today's construction. The estimated replacement cost using modern materials is $120 per square foot. Contractors charge $15 more per square foot to work on older houses. The estimated reproduction cost is $185 per square foot. What is the estimated loss in utility?

A. $15 per square foot B. $33 per square foot C. $65 per square foot D. $80 per square foot

3. The occupants of a dwelling have been granted a life estate by their daughter. What interest does the daughter hold in the property? A. Life tenant B. Remainder C. Trustee D. Trustor

4. A client requires the cost approach be completed for a warehouse located in an industrial park. There are no vacant land comparables in the market area. There are three sales of commercial buildings in the industrial park with similar lots that the appraiser has researched extensively. The appraiser found the following information:

Sale 1 sold for $1,750,000. The buyer allocated 20% of the value to the site and 80% to the value of the structure.

Sale 2 sold for $1,000,000. The buyer was not available for verification, but the seller was available. The seller had just built the structure after holding the lot for 10 years as an investment property. The seller paid $100,000 for the lot and had earned 25% straight line annual return on his investment over the cost of the structure and its entrepreneurial profit.

Sale 3 sold for $3,500,000. The buyer estimated that 90% of what he paid was for the structure.

What is the indicated value of the lot using the allocation approach? A. $125,000

B. $135,000 C. $350,000 D. $500,000

5. A homeowner purchased two adjacent lots in a tract subdivision 20 years ago and built a single-unit dwelling entirely on one lot,

utilizing the second lot as a side yard. The homeowner has decided to build a smaller home on the vacant side lot and retain the existing home as a rental. What term applies to the second yard? A. Excess land B. Surplus land C. Underutilized site D. Vacant site

6. While working on an appraisal of a residential property in a new home subdivision, the appraiser finds that the builders have a total of 100 home sites currently offered for sale. In measuring market demand, the appraiser notes that all of the builders combined are currently averaging two new sales contracts per month, and are expecting to sell 24 dwellings within the next year. What conclusion can be drawn with regard to the 100 available home sites and a market period of the next 12 months?

A. The market is in a condition of supply and demand B. The market is in a condition of balance C. The market is in a condition of undersupply D. The market is in a condition of oversupply

ANSWERS: 1 = C, 2 = C, 3 = B, 4 = C, 5 = A, 6 = D

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